The Tasmanian Government is hoping a new report into the state's hardwood plantations will boost investor interest in a pulp mill.

The State Government has released a review commissioned in September of public and private tree farms.

It found the estate totals more than 230,000 hectares, which is almost a quarter of the country's entire hardwood plantation estate.

It says there is a need for a pulp mill over time and such a project will enhance the value of the resource available.

Former Federal Resources Minister Martin Ferguson was contracted to lead the review.

Mr Ferguson believes the development of a pulp mill will give the biggest returns to growers.

Gunns receivers Korda Mentha put the site and building permits on the market last month.

"The biggest return to Tasmania from this huge hardwood plantation resource is obviously a pulp mill and that's why the timber was basically grown," he said.

"It was planted and grown for a pulp mill."

Resources Minister Bryan Green says it is a timely report given that the mill project is up for sale.

"This report will allow investors to understand exactly what the resource is and how keen Tasmania and importantly Tasmanians, those people who are growing trees on their property, are to achieve full value for their resource," he said.

Mr Green says hardwood plantations owners may be offered rate relief by the State Government.

The report found the bulk were grown under Managed Investment Schemes which have since collapsed, meaning several farmers have to pay land tax without receiving rent from investors.

Mr Green says the Government will also consider funding legal action to determine whether landowners or growers own the trees.

"The Government has noted the report at a Cabinet level and we have undertaken to implement several straight up of the recommendations that have been provided.

He did not say how much it would cost taxpayers.

Government 'chasing a mirage'

The Greens MP Kim Booth has criticised the report and says the Government is chasing a mirage.

"It's nothing to do with looking after farmers, it's all to do about trying to inflate the price of a worthless permit which nobody accepts in the Tamar Valley," he said.

"This will be the third election that we'll go to chasing a mirage of a pulp mill.

"And it's about time that they got over it and got on with it and started talking about real jobs, and real value rather than talking about wasting more public money propping up a project that doesn't exist and that will never be viable anyway."